Who owns Harrods now? The history behind Britain’s most iconic department store
WORLD famous department store Harrods has had five owners opening in 1849.
Mohammed Al-Fayed, who was one of Harrods most famous owners, is the subject of several posthumous rape accusations.
The dazzling Knightsbridge department store has a long history that began in the early 1840s when a grocery seller named Charles Harrod, first rented the store.
Mohammed Al-Fayed, who took over the luxury department store on March 12, 1985, is facing posthumous accusations of rape by former staff.
Qatar
In May 2010, Mohamed Al-Fayed sold Harrods to the Qatari royal family‘s, Qatar Holdings group for around £1.5bn.
Mohamed Al-Fayed, who died on August 30, 2023 at the age of 94, retired in 2010, after 25 years of being chairman of Harrods.
Harrods is owned by Harrods Ltd, a company currently owned by the state of Qatar via its sovereign wealth fund, the Qatar Investment Authority.
Prior to the sale Al-Fayed had received much interest from other investors but refuted claims that he would take up their advances.
Controversially at the time, Al-Fayed said he would turn down potential buyers – including that of Qatar’s – offering an offensive “two fingers” gesture at their offers, and stated, “It is not for sale”.
Months later he went back on his word, selling Harrods to Qatar due to difficulties Al-Fayed encountered getting his dividend approved by the trustees of the Harrods pension fund.
Before changing his mind and selling up, Al Fayed famously said: “People approach us from Kuwait, Saudi Arabia, Qatar.
“Fair enough, but I put two fingers up to them all.
“It is not for sale.
“This is not Marks & Spencer or Sainsbury.
“It is a special place that gives people pleasure. There is only one Mecca.”
Mohamed Al-Fayed
Mohammed Al-Fayed was born January 27, 1929.
Al-Fayed was an Egyptian billionaire businessman whose residence and primary business interests were in the United Kingdom from the mid-1960s.
In 1984, Al-Fayed and his brother Ali, purchased a 30 percent stake for £138 million in the House of Fraser – a group that previously included Harrods.
The Fayed brothers, bought the remaining 70% for £615 million in 1985, taking full ownership of the Knightsbridge department store.
Mohammed Al-Fayed also owned Hotel Ritz Paris and Fulham FC.
The Egyptian-born businessman had a son named Dodi who was romantically involved with Princess Diana, until they both died in a fatal car crash in Paris in 1997.
House of Fraser
House of Fraser was established in 1849, trading under the name of the founders Arthur & Fraser, as a small drapery store in Glasgow, Scotland.
When the co-founder Hugh Fraser died in 1873, his three eldest sons, James, John and Hugh, acquired stakes in the business and changed the name to Fraser & Sons.
The business continued to grow and in 1879, the Oxford Street flagship store in London was opened.
By 1948 the company, now named House of Fraser, had entered the listings of the London Stock Exchange.
However, Harrods wasn’t acquired by House of Fraser until 1959.
Harrods was part of the House of Fraser group until 1995, when the store moved into the private ownership of the Al Fayed brothers.
Charles Henry Harrod
Charles Henry Harrod is the founder of the world renowned Harrods department store.
Interestingly, when the doors first opened back during the 1840s, the shop sold groceries and only had a turnover of about £20 per week.
Born April 6, 1799 – March 31, 1885.
Harrod originally worked as a miller in Clacton.
He relocated to London to rent a small shop on Brompton Road, Knightsbridge that would later go on to be the world’s most famous department store.
Harrod concentrated on encouraging wealthy people to visit his store and provided a personalised service for important customers – a unique selling point of the business has continued to the present day.